Interest charges on DMP

brianzebra

Hi all,

I took out a DMP with CCCS last year (and thanks for the advice and support from all the good people on the board). I have been paying my debts off for a year and all of my creditors have witheld interest, until now.

As my review was due with First Direct, I got a call which said I would get a letter as my payments were now being covered by the consumer credit act, so I get a 'fixed term loan' document for the amount on my DMP with an interest rate of 6%.

I thought there was light at the end of the tunnel, however it seems to be getting further away now!

I have contacted CCCS who say that I should not sign the loan agreement, and that, it is likely that it would be passed to a debt collection agency who would accept reduced payments and would normally be able to reduce or stop interest.

Now, despite this advice I am a bit worried (a lot worried really). I thought this was being sorted and the bank threaten requiring the full amount up front if I default etc. Am I being greedy? Should I now just pay the interest? - or should I take the advice of the CCCS (who I don't doubt, but I am just so worried. I don't want a bailff knocking at the door).

I know I am being stupid, but this has so knocked my confidence at a time when I thought my debts were coming under control and so now I am doubting anything and everything.

Thank you in advance

CCCS_Sarah

Try not too worry!!!

This is normal, if they do default the account – all this means is they are ending the contract between you and the creditor so then they can pass the debt on to a collection agency.

Creditors do not have the power to send bailiffs, the only way you would get a bailiff for this debt is if you had a County Court Judgment and you didn’t pay it.